Tuesday, January 30, 2018

Position Sizing

*** old post I found from 2013/2014 ***


Just a reminder to respect position sizing and the importance of not being in a hurry to size up once profits start rolling in.

When the chart pattern, price action, and catalyst all line up to my predetermined specifications, I won't hesitate to be a big fat fatty pig.  But it took me thousands of trades to achieve this level of confidence.


It’s extremely easy to get impatient and overly confident, especially after making a few successful trades and seeing some of the impressive profits made by top traders.


My (unsolicited) advice?  Don’t be in a hurry to size up once you start making profits.  That’s precisely how you blow up an account and become a statistic.  Instead, trade small and comfortably until you’ve proven your strategy to yourself with performance consistency and account growth.